HIGHLIGHTS
- The yield on the 10-year Indonesia Government Bond edged up to 7.225% on 12 August 2026, from 7.224% in the previous trading session. Meanwhile, the 10-year US Treasury yield fell by 2 bps to 4.68% yesterday.
- Trading activity in the government bond market totaled IDR48.23 trillion, up from IDR32.55 trillion in the previous session, with transactions primarily concentrated in short-tenor bonds (less than five years). Despite the increase, trading volume remained slightly below the year-to-date (YTD) daily average of IDR49.43 trillion. Meanwhile, outright transactions declined to IDR17.04 trillion, compared with IDR20.37 trillion in the prior trading session.
- In the corporate bond market, total trading volume declined to IDR6.72 trillion from IDR8.29 trillion in the previous session, with activity continuing to be dominated by short-tenor bonds (less than five years). Despite the decline, trading volume remained well above the YTD daily average of IDR3.31 trillion. Outright transactions also decreased to IDR6.72 trillion, down from IDR7.99 trillion in the previous session.
- In the currency market, the Indonesian Rupiah depreciated by 0.20% against the US Dollar to IDR17,875/USD, from IDR17,840/USD in the previous session. Meanwhile, the Jakarta Composite Index (JCI) advanced 1.69%, closing at 6,374 from 6,268. In the commodity market, Brent crude edged higher to USD89.14 per barrel from USD88.91, while WTI Cushing Crude Oil Spot increased slightly to USD83.36 per barrel from USD83.20.
GLOBAL UPDATES
- US headline inflation eased to 3.4% YoY in July from 3.5% in June, while core inflation fell to 2.5% from 2.6%, signaling that the earlier energy-driven price shock continued to fade. Monthly headline and core CPI rose 0.1% and 0.2%, respectively, both in line with expectations. Energy prices fell 1.5% MoM, including a 2.9% decline in gasoline, while shelter rose 0.1%. The softer inflation backdrop, alongside weaker labor data, reduced expectations for a September Fed hike, with market-implied probability falling to 42%. (CNBC)
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